Indicator Overview

The indicator is a variant of the Market Value to Realised Value (MVRV) ratio, focusing exclusively on Short-Term Holders (STH). This metric measures the ratio between the current market price and the average acquisition cost for coins that have moved in the last 155 days. A value above 1.0 indicates that the average short-term holder is currently in profit, while a value below 1.0 signifies that the average short-term holder is holding at a loss. The metric reveals short-term market sentiment and saturation.

How To Use

The STH MVRV provides actionable insight into potential short-term market extremes and capitulation. Significant readings well above 1.0 (historically around 1.5 to 2.0, coloured dark red/orange) suggest the market may be approaching a short-term top or peak euphoria, which could be a opportune moment for prudent profit-taking. Conversely, sustained readings below 1.0 (where the average short-term holder is underwater) often pinpoint periods of heavy capitulation and deep value, signalling a potentially attractive buying or accumulation zone.